Bayo Adelabu, minister of finance, says Nigeria requires over $100 billion in combined government and private sector investments to fix the power sector.
Speaking at a press conference in Abuja on Tuesday, Adelabu
pledged to implement rapid corrective actions in the power sector.
“Put together, we are talking of over $100 billion of
investments in the upstream, midstream, and downstream of the power sector
value chain,” Adelabu said.
“This is not a figure to be underestimated, but it is
achievable in phases, through a combination of government and private sector
participation. Patience and consistent investment are key.”
According to the minister, the government estimates that
increasing power generation by 20,000 megawatts would cost about $30 billion,
based on an average of $1.5 billion for each 1,000MW plant.
He added that about $20 billion would be needed for
transmission infrastructure to carry the power, while distribution and gas
pipeline investments are estimated at roughly $25 billion and $22 billion,
respectively.
Adelabu noted that while South Africa, with a population of
around 60 million, is considering a $25 billion private sector investment in
its power sector, Nigeria — with over 200 million people — requires
significantly greater investment in comparison.
The minister also blamed recent power shortages on gas
supply constraints, noting that they have affected about 75 percent of
Nigeria’s gas-fired plants.
“Even the best turbines cannot operate without raw
materials. Global gas shortages due to the Middle East crisis, local supply
obligations, outstanding payments to gas suppliers, and pipeline repairs have
all contributed to the recent decline in generation,” he said.
The minister added that only two of the 32 power plants
currently have firm gas supply contracts, while the others depend on irregular,
best-effort deliveries.
“We are appealing to all stakeholders for coordinated action
to reverse this trend,” Adelabu said.
He called for coordinated and structured collaboration among
the ministries of power, petroleum, water resources, and environment.
“We see 24-7 electricity not as a destination, but as a
journey. Through phased investments, coordination, and private sector
engagement, Nigeria can attain a reliable electricity supply for all its
citizens,” the minister said.
Adelabu, on March 24, apologised to Nigerians over the poor
electricity supply and incessant outages witnessed in recent times.
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